01 — At a Glance
The Government’s Iron Ore Printing Press
- 52-Week High / Low₹86.8 / ₹59.5
- Q3 FY26 Revenue₹7,486 Cr
- Q3 FY26 PAT₹1,738 Cr
- Q3 EPS (₹)₹2.00
- Annualised EPS (Q3×4)₹8.00
- Book Value₹36.9
- Price to Book2.16x
- Dividend Yield4.14%
- Debt / Equity0.11x
- EV / EBITDA6.19x
Auditor’s Note: NMDC wrapped Q3 FY26 with ₹7,486 crore revenue (+15% YoY), ₹1,738 crore PAT (down 11% YoY due to lower realizations), and best-ever Q3 production of 146.84 lakh tonnes. 9M results even more impressive: ₹20,381 crore revenue (+22% YoY), ₹5,401 crore PAT (+4% YoY). The stock returned 6.9% in 6 months. P/E of 10.2x is literally sub-peers. India’s largest iron ore company. Government-owned. State-backed coal block just started production. And here you are, wondering if it’s a buy or just cheap for a reason.
02 — Introduction
NMDC: The Ore That Builds India, Quietly
Let’s talk about NMDC. Yes, the National Mineral Development Corporation. Yes, the one wholly owned by the Ministry of Steel. No, not a PSU scam stock. No, not entirely boring either. In fact, there’s something delightfully uncomplicated about a company whose entire business model boils down to: dig iron ore out of the ground, sell it to steelmakers, pocket the margin.
Founded in 1958, NMDC is India’s largest iron ore producer (51 MTPA capacity), owns 95.86% of Legacy Iron Ore in Perth, Australia, and just commissioned the Tokisud North coal block in January 2026 with 2.3 MTPA thermal coal capacity. Think of it as the ore factory that built every bridge, building, and highway in modern India. The company has never missed a dividend. Gross margins consistently hover at 60–70%. ROCE at 29.6%. And the stock? Trading at 10.2x P/E while your fintech unicorns trade at infinity.
Q3 FY26 delivered the highest quarterly production ever: 146.84 lakh tonnes. Revenue hit ₹7,486 crore—a 15% jump YoY. 9M results are even spicier: ₹20,381 crore revenue (+22%), and PAT of ₹5,401 crore. But here’s the plot twist: PAT fell 11% in Q3 because iron ore realizations came down from ₹5,361/tonne to ₹4,681/tonne. Translation: NMDC produced more, sold more, but pocketed less per tonne. The business got busier and poorer simultaneously. Welcome to commodity mining in 2025.
Concall Insight (Feb 2026): Management confirmed FY26 capacity targets of 55 MTPA, up from traditional guidance of 51 MTPA. Capital expenditure: ₹3,700 crore. Dividend clearly on the table—they just paid interim ₹2.50 per share in February.
03 — Business Model: Dig. Sell. Repeat.
One Business. Three Mines. Infinite Commodity Risk.
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